Brazilian coffee exports to the United States fell 46% in August, while shipments to Latin American neighbours increased, according to coffee exporters group Cecafe. Cecafe President Marcio Ferreira.
Brazil is the world's largest producer and exporter of coffee, while the United States is the largest consumer. U.S. imports of Brazilian coffee fell to 301,099 bags in August, down from 562,723 in the same month last year, following the imposition of a 50% tariff on most Brazilian goods, including coffee.
The tariffs have also affected Brazil’s instant coffee industry. According to ABICS, Brazil’s instant coffee exports to the U.S. in August fell 59.9% to 24,460 60-kilogram bags, compared to 65,914 bags in the same month last year.
Despite a decline in total exports to Germany, the country remained the largest importer of Brazilian coffee, receiving 414,109 60-kilogram bags in August. Meanwhile, exports to Mexico and Colombia rose 90% and 578%, reaching 251,166 and 112,948 bags, respectively.
Brazil's national crop agency Conab, and the International Coffee Organisation have warned that the tariffs could push coffee prices higher. As a result, Brazil, which incidentally is also the world’s second-largest coffee consumer, may experience increased domestic prices, potentially affecting inflation.
